Patrick Industries (PATK) Q3 2026 earnings summary

Executive summary

• Q3 net sales were $975.3M, essentially flat YoY; Marine, Powersports and Housing growth nearly offset a 15% RV revenue decline.

• Adjusted EBITDA rose 3% to $115.7M and adjusted EBITDA margin expanded 40 bps to 11.9%; adjusted diluted EPS was $1.03 versus $1.01.

• Reported operating income and net income declined amid higher SG&A, including merger-related costs; diversification and operational execution supported results amid soft demand.

Financial highlights

• Gross profit increased to $229.9M from $221.0M; gross margin rose 100 bps to 23.6%.

• Revenue change comprised 7% organic growth, 2% acquisition growth and a negative 9% industry impact.

• Operating income was $49.8M versus $66.3M; net income was $21.1M versus $35.3M, and diluted EPS was $0.64 versus $1.01.

• Adjusted net income was $33.6M versus $35.3M; adjusted operating margin was 6.8%, flat YoY.

Outlook and guidance

• FY26 RV wholesale shipments forecast at 285,000–295,000 units; RV retail shipments expected down low double digits.

• FY26 Marine wholesale shipments expected up low single digits and retail flat to slightly down; Powersports shipments expected up high single digits, with organic content up low double digits.

• FY26 manufactured housing shipments and housing starts expected down low to mid-single digits; adjusted operating margin expected flat, potentially 20 bps lower from affordability programs.

• FY26 operating cash flow forecast at $300M–$330M and capex at $70M–$80M, implying free cash flow of $230M–$250M.

• Initial FY27 outlook: adjusted operating margin up 30–50 bps; RV and Marine shipments flat, housing shipments/starts flat to up mid-single digits, and Powersports shipments and organic content up 3%–5%.